New gTLD Program
Community Priority Evaluation Report
Report Date: 10 August 2016
Application ID:
Applied-for String:
Applicant Name:

1-980-7217
MERCK
Merck KGaA

Overall Community Priority Evaluation Summary
Community Priority Evaluation Result
Did Not Prevail
Thank you for your participation in the New gTLD Program. After careful consideration and extensive
review of the information provided in your application, including documents of support, the Community
Priority Evaluation panel determined that the application did not meet the requirements specified in the
Applicant Guidebook. Your application did not prevail in Community Priority Evaluation.
Your application may still resolve string contention through the other methods as described in Module 4 of
the Applicant Guidebook.
Panel Summary
Overall Scoring

11 Point(s)Criteria#1: Community Establishment#2: Nexus between Proposed String and Community#3: Registration Policies#4: Community Endorsement
Total

EarnedAchievable

4
0
4
3
11

4
4
4
4
16

Minimum Required Total Score to Pass 14

Criterion #1: Community Establishment
4/4 Point(s)1-A Delineation
2/2 Point(s)The Community Priority Evaluation panel determined that the community as defined by the application met
the criterion for Delineation as specified in section 4.2.3 (Community Priority Evaluation Criteria) of the
Applicant Guidebook (AGB), as the community defined in the application demonstrates sufficientdelineation, organization, and pre-existence. The application received a score of 2 out of 2 points undercriterion 1-A: Delineation.
Delineation
Two conditions must be met to fulfill the requirements for delineation: there must be a clear, straightforward
membership definition and there must be awareness and recognition of a community (as defined by theapplication) among its members.
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According to the application:
The community served by the “.MERCK” TLD space is the collection of corporate entities, theiraffiliates and subsidiaries which together comprise the Merck Community. Membership in the Merck
Community is clearly defined in the following manner.
Members of the Merck Community are the companies which are part of the Merck Group...To berecognized as a member of the Merck Community, a registrant must meet the Eligibility
Requirements, which are as follows:- the registrant is Merck KGaA or a company which is a fully owned subsidiary of Merck KGaA,- the registrant uses “Merck” as the sole element or as a component of its company name, and- the registrant uses as its umbrella brand the German figurative trademark No. 30130670,“MERCK”
According to the AGB, “Delineation relates to the membership of a community, where a clear and straightforward membership definition scores high, while an unclear, dispersed or unbound definition scores low.”
As required by the AGB, the application shows a clear and straightforward membership definition, given theclarity of Merck KGaA’s own corporate structure, used by the applicant for the purposes of defining the
proposed community. The membership is tightly delineated through the three requirements noted above andthus satisfies the AGB’s requirement for a clear and straightforward membership definition.
According to the AGB’s second Delineation criterion, “community” implies “more of cohesion than a merecommonality of interest” and there should be “an awareness and recognition of a community among its
members.” The community as defined in the application has awareness and recognition among its members.
This is because the community as defined consists entirely of Merck KGaA and its fully-owned subsidiaries.
These members cohere by way of a shared corporate governance, financials, and mission statement. In
addition, according to the application, “members of the Merck Community are engaged in activities
concerning the manufacture, research, development, marketing or distribution of Merck-branded
pharmaceuticals and laboratory equipment.”
The Panel determined that the community as defined in the application satisfies both of the conditions tofulfill the requirements for delineation.
Organization
Two conditions must be met to fulfill the requirements for organization: there must be at least one entity
mainly dedicated to the community and there must be documented evidence of community activities.
According to the AGB, “organized implies that there is at least one entity mainly dedicated to the community,with documented evidence of community activities.” The applicant, Merck KGaA, is itself an organizationthat is expressly dedicated to its membership, i.e., the community as defined in the application. Merck KGaA
has not organized itself or its members for the purposes of obtaining a TLD but represents the members of
its defined community as a matter of its mission. Additionally, as required by the AGB, Merck KGaA
demonstrates that it engages in community activities. These include common corporate activities such as anannual general meeting.
The Panel determined that the community as defined in the application satisfies both of the conditions tofulfill the requirements for organization.
Pre-existence
To fulfill the requirements for pre-existence, the community must have been active prior to September 2007
(when the new gTLD policy recommendations were completed) and must display an awareness andrecognition of a community among its members.

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The community as defined in the application, i.e., Merck KGaA and its wholly-owned subsidiaries, was active
prior to September 2007 as required by the AGB, section 4.2.3. In 1668 the Merck family began its
pharmaceutical business, which has since evolved into a multinational corporation. As discussed above,
Merck’s membership, in addition to being active prior to 2007, demonstrates the AGB’s requirements forawareness and recognition.
The Panel determined that the community as defined in the application fulfills the requirements for preexistence.
1-B Extension
2/2 Point(s)The Panel determined that the community as identified in the application met the criterion for Extension
specified in section 4.2.3 (Community Priority Evaluation Criteria) of the AGB, as the application fulfilled
the requirements for the size and longevity of the community. The application received a score of 2 out of 2
points under criterion 1-B: Extension.
Size
Two conditions must be met to fulfill the requirements for size: the community must be of considerable size
and must display an awareness and recognition of a community among its members.
The community as defined in the application is of considerable size. According to the applicant’s website, thecompany employs around 50,000 people in 68 countries. Additionally, as discussed above, the community
defined by the application demonstrates the recognition and awareness required by the AGB.
The Panel determined that the community as defined in the application satisfies both of the conditions tofulfil the requirements for size.
Longevity
Two conditions must be met to fulfill the requirements for longevity: the community must demonstrate
longevity and must display an awareness and recognition of a community among its members.
The community as defined in the application demonstrates longevity. Merck KGaA has been in existence forover 300 years, is a publicly traded company, and invested €1.7 billion in research and development in 20151.
There is clear evidence that the company intends to operate in the future. Additionally, as discussed above,the community defined by the application demonstrates the recognition and awareness required by the AGB.
The Panel determined that the community as defined in the application satisfies both of the conditions tofulfill the requirements for longevity.
Criterion #2: Nexus between Proposed String and Community
0/4 Point(s)2-A Nexus
0/3 Point(s)The Panel determined that the application did not meet the criterion for Nexus as specified in section 4.2.3(Community Priority Evaluation Criteria) of the AGB. The string does not identify or match the name of thecommunity as defined in the application, nor is it a well-known short-form or abbreviation of thecommunity. The application received a score of 0 out of 3 points under criterion 2-A: Nexus.
To receive the maximum score for Nexus, the applied-for string must match the name of the community or
be a well-known short-form or abbreviation of the community name. To receive a partial score for Nexus (of2 out of 3 points; 1 point is not possible), the applied-for string must identify the community. “Identify
means that the applied-for string should closely describe the community or the community members,
without over-reaching substantially beyond the community.”
According to the application:

1 See http://www.emdgroup.com/m.group.us/emd/images/Merck-Infographic-USA_v3_tcm2252_143783.pdf?Version=

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The applied-for “.MERCK” string is identical to the Merck Community’s distinctive corporate nameand globally famous trademark. The individual companies which comprise the Merck Community
actively self-identify as members of the Merck Community, and utilize the Merck name within theirown corporate titles. Members of the public recognize the name Merck as corresponding to the
Merck Community and its constituent members.
According to the AGB, “identify means that the applied for string closely describes the community or thecommunity members, without over-reaching substantially beyond the community” (AGB, 4.2.3, emphasis added), andthe applied-for string must at least identify the community for full or partial credit. Although the string
Merck matches the name of the community as defined by the applicant, it also matches the name of anothercorporate entity known as “Merck” within the US and Canada2. This US-based company, Merck & Co, Inc.,
operates in the pharmaceutical, vaccines, and animal health industry, has 68,000 employees, and had revenueof US$39.5 billion in 2015. It is therefore a substantial entity also known by the name “Merck”. The Panelhas therefore determined that the string is “over-reaching substantially beyond the community” (AGB) it
defines because the applied-for string also identifies a substantial entity—Merck in the US and Canada—that
is not part of the community defined by the applicant.
The Panel determined that the applied-for string does not match or identify the community or thecommunity members as defined in the application. It therefore does not meet the requirements for Nexus.
2-B Uniqueness
0/1 Point(s)The Panel determined that the application did not meet the criterion for Uniqueness as specified in section
4.2.3 (Community Priority Evaluation Criteria) of the AGB, as the string does not score a 2 or a 3 on Nexus.
The application received a score of 0 out of 1 point under criterion 2-B: Uniqueness.
To fulfill the requirements for Uniqueness, the string must have no other significant meaning beyond
identifying the community described in the application and it must also score a 2 or a 3 on Nexus. The string
as defined in the application does not demonstrate uniqueness as the string does not score a 2 or a 3 on
Nexus and is therefore ineligible for a score of 1 for Uniqueness. This is based on the Panel’s determinationthat the applied-for string “.MERCK” does not identify the community defined by the application according
to AGB standards. Therefore, since the string does not identify the community, it cannot be said to “have noother significant meaning beyond identifying the community” (AGB, emphasis added). The Panel determined thatthe applied-for string does not satisfy the condition to fulfill the requirements for Uniqueness.
Criterion #3: Registration Policies
4/4 Point(s)3-A Eligibility
1/1 Point(s)The Panel determined that the application met the criterion for Eligibility as specified in section 4.2.3(Community Priority Evaluation Criteria) of the AGB, as eligibility is restricted to community members. The
application received a maximum score of 1 point under criterion 3-A: Eligibility.
To fulfill the requirements for Eligibility, the registration policies must restrict the eligibility of prospective
registrants to community members. According to the application:
To be recognized as a member of the Merck Community, a Registrant must meet the Eligibility
Requirements, which are:- the Registrant is either Merck KGaA, the Registry Operator of the gTLD “.MERCK,” or is acompany which is a fully owned subsidiary of Merck KGaA,- the Registrant uses “Merck” as the sole element or as a component of its company name, and- the Registrant uses as its umbrella brand the German figurative trademark No. 30130670,“MERCK”

2 The company is known as MSD outside of the US and Canada.

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The application therefore demonstrates adherence to the AGB’s requirement by restricting domain
registration to entities who are members of the community defined by the application. The Panel determinedthat the application satisfies the condition to fulfill the requirements for Eligibility.
3-B Name Selection
1/1 Point(s)The Panel determined that the application met the criterion for Name Selection as specified in section 4.2.3(Community Priority Evaluation Criteria) of the Applicant Guidebook, as name selection rules are consistent
with the articulated community-based purpose of the applied-for TLD. The application received a score of 1out of 1 point under criterion 3-B: Name Selection.
According to the application:
The Merck Community anticipates having an ample supply of relevant domain names available for
its use, which will assist in the marketing of Merck products, the delivery of Merck products andservices, and the development of new services…Once registered, individual domain names withinthe “.MERCK” space may be used to provide specific information relevant to particular geographic
locations, product lines or research activities. For instance, patients seeking information about aparticular medication might search for the name of the drug at PRODUCTNAME.MERCK, or
research professionals inquiring about new laboratory equipment might begin their search at
EQUIPMENTNAME.MERCK. Thus, “.MERCK” domains will indicate clearly to consumers thecontent available at the corresponding websites, providing users with an enhanced Internet
experience.
Therefore, the Panel determined that the application fulfilled the requirements for Name Selection rules thatare consistent with the applicant’s community-based purpose, which is to “enhance communication within,and to raise awareness, heighten confidence, and ensure integrity of information concerning the activities andproducts of the Merck Community worldwide.”
3-C Content and Use
1/1 Point(s)The Panel determined that the application met the criterion for Content and Use as specified in section 4.2.3(Community Priority Evaluation Criteria) of the Applicant Guidebook, as the content and use rules included
are consistent with the articulated community-based purpose of the applied-for TLD. The application
therefore received a score of 1 point under criterion 3-C: Content and Use.
To fulfill the requirements for Content and Use, the registration policies for content and use must be
consistent with the articulated community-based purpose of the applied-for gTLD. According to theapplication:
Once registered, individual domain names within the “.MERCK” space may be used to provide
specific information relevant to particular geographic locations, product lines or research activities…
All “.MERCK” domain names shall be used:- to further the mission and purpose of the Merck Community;- to display only content related to the Merck Community’s activities
The application therefore demonstrates adherence to the AGB’s requirement of content and use rules thatare consistent with the application’s community-based purpose, which is to “enhance communication within,and to raise awareness, heighten confidence, and ensure integrity of information concerning the activities andproducts of the Merck Community worldwide.”3-D Enforcement
1/1 Point(s)The Panel determined that the application meets the criterion for Enforcement as specified in section 4.2.3(Community Priority Evaluation Criteria) of the AGB. The application provides specific enforcement
measures and outlines a coherent and appropriate appeals mechanisms. The application received a score of 1
point under criterion 3-D: Enforcement.

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Two conditions must be met to fulfill the requirements for Enforcement: the registration policies must
include specific enforcement measures constituting a coherent set, and there must be appropriate appeals
mechanisms. According to the application:
Merck KGaA will monitor the space and shall have the right to revoke any domain name registration
or re-allocate any domain name registration to a different Community member should Merck KGaA
deem such action appropriate for the benefit of the Community.
Merck KGaA will “police” the Merck Community’s online space, which will reduce the risk ofabuse. Merck KGaA will operate a verification system to prevent the misuse of Membership IDs
and to ensure compliance with the “.MERCK” Registration Restrictions and Use Policy…Merck
KGaA, as the Registry Operator, is responsible to the members of the Merck Community for theeffective management of the “.MERCK” space, and accordingly will reserve the right in the“.MERCK” Registration Restrictions and Use Policy to make changes to domain name registrations(including their cancellation or transfer) as deemed necessary in the best interests of the Community
at large. Any registrant who disagrees with a decision taken by Merck KGaA regarding a registration
will have recourse under the MEFRP.
Dispute Resolution: A number of dispute resolution mechanisms will be available to third parties
and⁄or Merck Community members including the: Trademark Post-Delegation Dispute Resolution
Procedure, Registry Restrictions Dispute Resolution Procedure, Uniform Domain Name Dispute
Resolution Policy, Uniform Rapid Suspension System, Charter Eligibility Dispute Resolution Policy,
and the .MERCK Eligibility and Functionality Reconsideration Policy.
The applicant outlined policies that include specific enforcement measures constituting a coherent set and an
appeals mechanism. The Panel determined that the application satisfies both of the two conditions to fulfill
the requirements for Enforcement and therefore scores 1 point.
Criterion #4: Community Endorsement
3/4 Point(s)Support for or opposition to a CPE gTLD application may come by way of an application comment on
ICANN’s website, attachment to the application, or by correspondence with ICANN. The Panel reviews
these comments and documents and as applicable attempts to verify them as per the guidelines published on
the ICANN CPE website. Further details and procedures regarding the review and verification process may
be found at http://newgtlds.icann.org/en/applicants/cpe. The table below summarizes the review andverification of all support for and opposition to the Merck KGaA application for the string “Merck”.
Summary of Review & Verification of Support/Opposition Materials as of 16 May 2016
Total Received andReviewed

Total Valid for
Verification

Verification
Attempted

Successfully
Verified

Application
Comments

1

0

0

0

Attachments to
20(f)

14

11

11

8

Correspondence

133

12

12

8

Grand Total

28

23

23

16

3 12 letters were contained in a single piece of correspondence.

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4-A Support
2/2 Point(s)The Community Priority Evaluation panel determined that the application fully met the criterion for Support
specified in section 4.2.3 (Community Priority Evaluation Criteria) of the Applicant Guidebook, as theapplicant had documented support from the recognized community institution(s)/member organization(s).
The application received a maximum score of 2 points under criterion 4-A: Support. To receive themaximum score for Support, the applicant is, or has documented support from, the recognized community
institution(s)/member organization(s), or has otherwise documented authority to represent the community.
“Recognized” means those institution(s)/organization(s) that, through membership or otherwise, are clearlyrecognized by the community members as representative of the community. To receive a partial score for
Support, the applicant must have documented support from at least one group with relevance.
Because the applicant, Merck KGaA, is applying for a gTLD intended for use by itself and its wholly-owned
subsidiaries, the Panel determined that the applicant was itself the recognized community
institution/member organization. A recognized community institution or member organization is one which
not only (1) represents the entirety of the community as defined by the application, but is also (2) recognizedby the same community as its representative. Merck KGaA, as the parent company, meets these standards.
The Community Priority Evaluation Panel determined that the applicant therefore satisfies the requirements
for full credit for Support.
4-B Opposition
1/2 Point(s)The Community Priority Evaluation panel has determined that the application partially met the criterion for
Opposition specified in section 4.2.3 (Community Priority Evaluation Criteria) of the Applicant Guidebook,as the application received no relevant opposition. The application received a score of 1 out of 2 points
under criterion 4-B: Opposition.
To receive the maximum score for Opposition, the application must not have received any opposition of
relevance. To receive a partial score for Opposition, the application must have received opposition from, at
most, one relevant group of non-negligible size. The Community Priority Evaluation panel has determinedthat there is opposition from one relevant group of non-negligible size. The applicant was subject to a legal
rights objection (LRO)4 from Merck & Co, Inc. The latter asserts trademark rights for .Merck, to which it
contends the gTLD string is identical. As discussed under section 2-A Nexus, although the string Merck
matches the name of the community as defined by the applicant, it also matches the name of anothercorporate entity known as “Merck” within the US and Canada (Merck & Co, Inc.)5. The Panel has
determined that the opposition demonstrated by the LRO is therefore relevant. The Panel considered Merck& Co, Inc.’s opposition to be inclusive of the letters of opposition submitted by a number of its subsidiaries,
which the Panel determined to be one relevant group of non-negligible size. The applicant partially met therequirements for Opposition.
Disclaimer: Please note that these Community Priority Evaluation results do not necessarily determine thefinal result of the application. In limited cases the results might be subject to change. These results do notconstitute a waiver or amendment of any provision of the AGB or the Registry Agreement. For updated
application status and complete details on the program, please refer to the AGB and the ICANN New
gTLDs microsite at <newgtlds.icann.org>.

4 https://newgtlds.icann.org/sites/default/files/drsp/25sep13/determination-1-1-980-7217-en.pdf
5 The company is known as MSD outside of the US and Canada.

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